Amrapali seeks Supreme Court nod to rope in other builders to complete projects

NEW DELHI: Embattled real estate firm Amrapali group has approached the Supreme Court seeking its permission to rope in other builders to complete its various housing projects and hand over possession of flats to the hassled homebuyers.The company, which is facing insolvency proceedings initiated by the creditor bank for not repaying the loan, said in an affidavit in the top court that it was not in a position to complete the projects and hand over possession of flats to over 42,000 home-buyers in a time-bound manner and the properties were needed to be developed with the help of co-developers.It claimed that many firms have expressed interest in taking over and completing these housing projects.â€oeApart from the massive inventory which has been sold and is at various stages of development, the ongoing projects of Amrapali group have vacant land available (earmarked for future development) which can be developed with the assistance of co-developers and, subsequently, sold to prospective buyers."This would provide for the necessary liquidity and cash flows for payment to the creditors and also investments in projects that unfortunately have negative cash flows,â€ the company said in its affidavit.It urged the court to allow co-developers "to come in to construct, develop and deliver homes in certain under-construction projects of the group.â€"The plan will not only provide for speedy construction of houses but would also facilitate and ensure payments to all the creditors, including those who have already approached the NCLT for insolvency proceedings," it said.A bench of Justices Arun Mishra and Amitava Roy had on January 31 asked the firm to submit a comprehensive plan with a time line on how it would complete its pending projects.It had also asked the authorities of Noida and Greater Noida, Committee of Creditors, the Interim Resolution Professional (IRP) and other parties to file their responses to the proposal submitted by the company.The bench had said this was a "serious issue" and a "complicated case" wherein it has to go into the details of the money paid by home buyers and the loans and mortgage made to secure that loan.Amrapali's counsel had said one Galaxy Developers has come forward to develop the flats in a timely manner.The National Company Law Tribunal (NCLT) had earlier admitted insolvency proceedings against Amrapali Group and appointed an interim resolution professional to manage the affairs of the company on September 4 last year.The top court is hearing a batch of pleas filed by flat buyers who have sought quashing of the September 4 last year's NCLT order and said the moratorium imposed under the provisions of the Insolvency and Bankruptcy Code, 2016, is violative of Article 14 (equality before law) of the Constitution.

Related

NEW DELHI: The Supreme Court today asked the embattled real estate firm Amrapali Group to furnish by tomorrow details of 47 residential towers, which are nearing completion, and how much money it had taken from flat buyers as well the amount invested.A bench of justices Arun Mishra and Amitava Roy said that the company should also give details about the funds which have been frozen after the start of insolvency proceedings."Our ultimate concern is that home buyers should get their flats as early as possible.

NEW DELHI: The Supreme Court today directed the embattled real estate firm Jaypee associates to deposit Rs 2000 crore by October 27 with its registry and asked the NCLT- appointed interim resolution professional (IRP) to take over its management and work out a plan to protect the interests of homebuyers and creditors. The apex court, in effect, allowed the insolvency proceedings against Jaypee Infratech to continue but stayed the proceedings initiated against it in other fora like the Consumer Commission.

NEW DELHI: The Supreme Court today agreed to hear IDBI Bank's plea seeking modification of its order staying insolvency proceedings against embattled real estate firm Jaypee Infratech on September 11. A bench comprising Chief Justice Dipak Misra and Justices Amitava Roy and A M Khanwilkar considered the submission of the bank that staying the order of the National Company Law Tribunal (NCLT) in Allahabad had reversed the position and, as a consequence, the company had gone back to defaulting promoters.

NEW DELHI: Embattled realty firm Jaiprakash Associate Limited (JAL) today deposited Rs 150 crore in the Supreme Court registry in pursuance of a direction aimed at protecting the interests of hassled home buyers.The firm also moved an application before a bench headed by Chief Justice Dipak Misra seeking extension of time to deposit remaining Rs 125 crore within a month.

NEW DELHI: Crisis-hit realty firm Amrapali group is making efforts to monetise its land bank and rope in co-developers to complete over 30,000 housing units in Noida and Greater Noida, the company's MD Anil Sharma said. He also assured home buyers that the firm's promoters "are not running away from the country" and the company intends to complete all its ongoing projects. Buyers have been protesting due to huge delays in completion of projects amid reports about the company going bankrupt and promoters planning to leave the country. "We are not running away from the country.

By Upmanyu Trivedi and Dhwani Pandya Fifteen miles east of India’s capital lies Jaypee Wish Town, a sprawling 1,162-acre site spotted with unfinished residential towers that embody the human cost of the nation’s bad-loan mess and point to the difficulty of resolving it. Jaypee Infratech Ltd., Wish Town’s developer, is among the first 12 corporates that the central bank pushed into insolvency court after it was armed this May with new powers to expedite resolution of the nation’s more than $180 billion in soured debt.

NEW DELHI: Moved by the plight of homebuyers who have not been given the possession of flats despite paying money to builders, the Supreme Court today observed it wanted to help these investors who must get their flats or their money refunded. A bench headed by Chief Justice Dipak Misra said this while hearing a plea by over 40 homebuyers of Jaypee Wish Town project at Noida in Uttar Pradesh who have challenged certain provisions of the Insolvency and Bankruptcy Code, 2016. The apex court, however, said it does not want to have more litigations in such matters.

Domestic lenders have launched aggressive steps to start insolvency proceedings against the companies named in the Reserve Bank of India’s second list of defaulters recommended for insolvency proceedings. While many of the companies named in the second list are making desperate attempts to get their debt restructured, top lenders are preparing to file insolvency proceedings against them before the December 13 deadline in the cases where restructuring is expected to fail, Mint reported on Wednesday quoting a top banker.

NOIDA: The senior management of Jaypee group has received forms seeking their consent for contribution of a part of their October salaries to the company as a loan. The note issued on Thursday states the company will repay the amount to them in nine equal installments starting January 2018.

NEW DELHI: Several buyers of Amrapali projects in Greater Noida on Wednesday moved the Supreme Court, challenging a section of the National Company Law Tribunal (NCLT) Act that allows NCLT to keep out homebuyers from any insolvency proceedings pending before it. Insolvency proceedings can only be initiated by secured creditors such as banks and financial institutions before NCLT. While these proceedings are pending, any third parties — including homebuyers — are barred from approaching any other judicial fora for relief.